The directions shall come into effect from June 1, 2020, the central bank said.
The Reserve Bank of India (RBI) has issued directives to ease access to the domestic foreign exchange derivative markets by merging facilities for residents and non-residents into a single unified facility for all users and allowing users having valid exposures to hedge the same by using any available instrument.
In a circular dated April 7, the RBI issued the final set of directions for Hedging of Foreign Exchange Risk in a bit to attract foreign interest to the domestic foreign exchange derivative markets.
Hedging is done to minimise or offset the chance of your asset losing its value.
Other directions include introducing facilities to hedge anticipated exposures and simplifying procedures for authorised dealers to offer foreign exchange derivatives.
The directions shall come into effect from June 1, the central bank said.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
